The housing recovery is back on pause

☕️ Monday morning, back at it! Today’s newsletter is 683 words, a 2.5-minute read.

1. Jobs report sparks inflation fears; Trump responds

President Trump on Friday pushed back on inflation concerns driven by a strong jobs report, arguing robust growth should be viewed as a positive for markets.

“With a great Jobs Report, like just announced, stocks should go up, not down,” Trump wrote on Truth Social. “That’s the way it was for 200 years. Growth does not mean inflation! How else can a Country attain GREATNESS???”

The Labor Department reported Friday morning that the U.S. economy added 172,000 jobs in May — roughly double what forecasters projected. The unemployment rate was 4.3 percent, the same as the previous month.

Related: How jobs data will impact mortgage rates

2. Dallas Fed president warns a rate hike may be needed

Lorie Logan, a voting FOMC member, said she is "increasingly concerned that higher interest rates could be necessary later this year" after inflation ran close to 4% over the past 12 months and appears to be trending toward the mid-2s rather than the Fed's 2% target.

Her remarks came Wednesday, before Friday's jobs report showed the economy added 172,000 jobs in May with unemployment holding steady at 4.3% — data that strengthens the case for tightening.

Logan also pointed to strong corporate earnings and continued AI investment as signs monetary policy isn't doing enough to slow growth. Logan was one of three FOMC dissenters at the April meeting.

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3. More Nuggets

💼 Synergy One Lending merges into American Pacific Mortgage. (NMN)

📊 Achieve expands HELOC eligibility ahead of TPO Llaunch. (NMP)

📈 UWM open to enhancing Two Harbors offer. (BusinessWire)

4. The housing recovery is back on pause

The spring housing market lost some momentum in May. New listings — which typically peak in May and June — fell 0.8% from April and were down 4.1% from a year ago, according to Zillow.

Here’s what else Zillow reports:

• Sales slipped from a year ago: Existing-home sales fell 2.9% year over year, a sign that higher borrowing costs continue to weigh on buyer demand.

• Homes are taking longer to sell: The typical home went pending in 18 days, one day slower than both April and a year ago.

• Fewer homes are selling above asking price: Just 28.4% of homes sold above list price in April, down from 30.1% a year earlier.

• Price cuts remain common: Nearly one in four listings (23.9%) had a price reduction in May, highlighting the growing need for sellers to price competitively.

5. Florida jury awards $47.8M in buyer broker commission fraud case

A Miami jury found three defendants liable for fraud and conspiracy after a real estate agent spent more than a year finding and negotiating a $2.8M waterfront property for clients — only to be cut out of the deal when the clients' sister swooped in as the buyer's broker less than two hours after they told the agent they weren't interested.

The sister was paid $5,000. The rest of the buyer broker commission was credited back to the buyers. The original agent lost an $84,000 commission. The jury awarded $47.8 million in compensatory and punitive damages.

• The defendants' attorney is challenging the verdict, arguing punitive damages are capped under Florida law at roughly $240,000 and will seek a new trial or reduced judgment.

The case is being watched by the industry as buyer broker agreements become standard post-NAR settlement — and brokers weigh whether and when to enforce them in court.

☀️ You’re all caught up. See you on Wednesday!

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